Many of the centralized cryptocurrency platforms that collapsed this year had something in common: a young, outspoken, and cocky leader. Each attained outsized influence, not because of their outsized intellect or talent, but because of their piles of cash and huge Twitter followings. And each time, misplaced faith in her abilities has had disastrous results.
If crypto is to avoid similar disasters in the future, it’s time we realign our leadership priorities. We must abandon the cult of personality.
The Crypto Theater on Twitter
Prior to FTX’s collapse, founder Sam Bankman-Fried (SBF) had earned a reputation as one of the loudest voices in the industry. He was active in the political world and frequently commented on what was happening on Web3.
Related: Thanks to regulators and whales, the Digital Currency Group is on the verge of disaster
But perhaps most notable was his active involvement in a variety of Twitter feuds and spectacles. SBF first came into the limelight as the successor to SushiSwap after Chef Nomi abruptly abandoned the project — a drama that played out almost entirely on the public Twitter stage. His subsequent Twitter antics, combined with the image of unstoppable success that FTX spread far and wide, garnered him more than a million followers.
But even as SBF’s influence grew, he just couldn’t seem to resist shitposting and regularly connecting with fellow rock-throwing Twitter users.
In fact, SBF’s penchant for Twitter drama played a major role in exposing FTX’s bankruptcy. It was his recent altercation with CZ that ultimately led to the run on FTX’s deposits. His attention-grabbing antics continued throughout the current ordeal, culminating in a bizarre series of cryptic tweets.
The loudest voices in the room
While SBF is the latest example of an industry figure whose high-profile Twitter presence led to a high-profile decline, he certainly isn’t the first. Do Kwon and Su Zu, who were both at the center of monumental burglaries earlier this year, were also notorious trolls. Do Kwon sent an arrogant series of tweets just before Terra’s demise, while Su Zhu’s notoriously elusive comments during the 2021 bull run haven’t aged well either.
At our company outside this week with all the drama that’s happening. Debate on who is the bigger villain in crypto:
a) Do Kwon – Loss of $58bn to UST & LUNA
b) SBF – $10bn missing deposits in FTX
c) Su Zhu – $3.5 billion loss from borrowers
d) Alex Mashinsky – $2.8 billion missing deposits in Celsius— Bobby Ong (@bobbyong) November 10, 2022
But the leaders of failed platforms aren’t the only ones guilty of boasting on social media. Finally, Binance’s CZ was just as guilty as SBF for being involved in their public Twitter feud earlier this month. Digital Currency Group’s Barry Silbert, who has been the focus of concern surrounding the FTX fallout, has also gained a reputation as a shit poster.
There are many, many more tweeters who have used online spectacle and trolling as a means of controlling the industry talk. Think Ben Armstrong (aka “Bitboy”) and Jim Cramer to name a few. There’s a small army of them. And while many are purged in every bear market, their successors are increasingly becoming powerhouses too vocal and influential to ignore in the room.
Jim Cramer said that he sold all his cryptos.
Then he accused @APompliano for “plugging” it into BlockFi.
So he… lied?
Now he’s on a crusade to blame everyone he can find for their own bad decisions, even “digital financiers,” which is literally a made-up term. https://t.co/NTojFohvFQ
– The wolf of all streets (@scottmelker) November 18, 2022
We must end the cult of personality
So what’s the solution? How can we better identify this personality type and use this knowledge to avoid future pain?
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Instead of focusing on building cults of personality, the crypto community needs to focus on platforms and leading companies building products that use Web3 primitives to solve problems in a way that is orders of magnitude better than anything else we have experienced before. The crypto community needs to stop listening to the loudest voices in the room and start listening to the smarter, more experienced voices — even if they’re sometimes quieter. And for the same reason, we need developers with experience in creating real value for users so that they speak up more.
Ultimately, the answer lies with us and the people we honor as an industry. We must learn to identify and support developers who develop transparent, secure and high-quality applications and decentralized applications – regardless of how many followers they have.
Corey Wilton is co-founder and CEO of Mirai Labs, the international gaming studio behind Pegaxy. A renowned speaker and play-to-earn thought leader, he founded his first crypto company in 2018, a customer service dedicated to helping cryptocurrency companies with their customer service.
This article is for general informational purposes and should not be construed as legal or investment advice. The views, thoughts, and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.